Romania’s social democrat government has drafted the 2017 state budget on an economic growth projection of 5.2%.
The budget deficit is estimated at 2.96% to stay within the EU limit of 3%. It also considers an inflation rate of 1.4% and an unemployment rate of 4.3%.
The government targets investments of 4.84% of the gross domestic product this year (RON39.4 billion), up by RON10 billion compared with last year. Government debt is estimated at 37.7% of GDP.
The Fiscal Council warned earlier this week the government’s budget revenue projection is overvalued, while its spending projection is undervalued, which would widen the targeted deficit.
The budget draft has been sent to Parliament, which is expected to establish a calendar for its adoption.